Panel: Utilities promoting conservation a conflict

AUGUSTA – Energy conservation programs should not be managed by utilities as state law allows, but by the Public Utilities Commission, a coalition of senior citizens, environmentalists, doctors and low-income people says.

Companies such as Central Maine Power charge ratepayers for energy conservation programs, then must implement programs that could cut profits, the Maine Energy Efficiency Coalition told lawmakers Monday.

Opponents told the Utilities and Energy Committee they see a financial conflict of interest in that practice.

A study released last month by the State Planning Office triggered a debate over how to spend more than $16 million collected from electric power customers each year for residential and commercial conservation efforts.

After hearing the comments Monday, the committee ordered a subcommittee to come up with a proposal to be considered by the Legislature after it reconvenes in January.

CMP spokesman David Allen said the power delivery company isn’t opposed to having someone else administer new conservation programs as they are created.

But CMP wants to continue administering programs it has already started, such as water-heater wrapping, replacement of shower heads, advice to businesses on how to save energy and subsidies to customers to help them buy efficient equipment and lights.

Allen said those programs have saved customers millions of dollars, and it costs consumers 3 percent of electric rates.

State Public Advocate Stephen Ward took the side of the consumers’ group, saying utilities have little incentive to diminish energy use because doing that cuts profits.

Ward said consumers would benefit by the change because more conservation could mean smaller monthly electric bills. National security is also a consideration, said Sue Jones of the Natural Resources Council of Maine.

The nation has focused on increasing energy security with little talk of conservation since the terrorist attacks of Sept. 11, Jones said. Conservation should be an important part of a security plan because it would mean less reliance on foreign oil, she said.

Jones noted that Maine has the 10th highest level of energy consumption per capita nationally.